In 1984, when the world's first "smart building" was established in Connecticut, USA, and in 1994, Shenzhen saw its first agency for the US X-10 retailer, smart products have now become ubiquitous. The concept of a "smart home" has quietly emerged around us, with smart hardware gradually entering living rooms, enhancing home safety, convenience, and comfort.
After more than two decades of growth, China’s smart home industry is now at its second crossroads. On one hand, consumers are questioning whether these products are worth buying; on the other, massive investments are pouring into the market. How to choose the right smart home solution? Where should one start? Can one truly have both quality and affordability? To find answers, it's essential to return to the core purpose of smart homes.
At the early stage, home automation dominated the smart home landscape. Compared to other tech industries, China’s smart home sector did not lag behind globally. In 1994, the industry entered its infancy, with no dedicated companies yet, but there was rapid recognition of the smart concept. At that time, home automation was synonymous with smart homes. Two of the earliest Chinese smart home companies emerged in Shenzhen, primarily acting as agents for U.S.-imported smart home products, such as the renowned X-10 system. This system used micro-processing technology to control household appliances and systems, though strictly speaking, it was more about automation than true intelligence.
From 2000 to 2005, as real estate and home furnishing markets grew rapidly, the smart home industry expanded. Over 50 R&D and production enterprises emerged, but most lacked core technologies, relying heavily on foreign imports. Their focus was on high-end markets like luxury hotels and foreign enterprises, making the smart home market seem distant and unattainable. Despite this, early companies made significant progress. Today, many high-end hotels still use upgraded versions of those original systems, introducing the idea of smart homes to the public through word-of-mouth. This led to ongoing discussions: Is automation truly intelligent? What does intelligence mean? These questions remain central to the industry.
By 2006, the rise of the internet industry brought new opportunities. Network technology transformed traditional home appliances into network-connected devices, offering a fresh take on smart homes. Foreign brands like Legrand, Honeywell, and Control4 entered the Chinese market, influencing local companies. This marked the first major turning point, where the industry shifted from pure automation to a more intelligent experience.
During this period, companies without strong technological foundations exited the market, while others adapted and evolved. Brands like Tianjin Ruilang, Qingdao Airhouse, and Haier successfully transitioned, focusing on smart home solutions. By 2010, the industry had matured, forming clusters and preparing for broader competition.
The next phase saw a market boom. With increased investment, social attention, and government support, consumer attitudes also changed, fueling rapid growth. Internationally, tech giants like Google, Apple, and Amazon invested heavily in smart home technologies. Domestically, traditional appliance makers, electronics companies, and internet firms competed fiercely. The market size grew significantly, from 29 billion yuan in 2014 to over 90 billion yuan by 2017.
However, the boom also brought challenges. Many "pseudo-smart" products flooded the market, often adding unnecessary features that complicated daily life. Products like smart chopsticks, smart coasters, and smart egg boxes were criticized for being impractical. While they captured attention, they failed to deliver real value. As a result, many companies began rethinking their approach, leading to the second crossroads: returning to the original vision of creating a smarter, more convenient lifestyle.
Today, the smart home industry stands at a critical moment. The key lies in staying true to its original purpose—enhancing life through practical, user-friendly solutions. Companies must focus on delivering real value rather than chasing trends. Only by doing so can they navigate this complex landscape and build a sustainable future.
Dongguan Pinji Electronic Technology Limited , https://www.iquaxusb4cable.com